26-10-2011

CME Q3 Revenues Rise 23%

By Cathy Meils

    PRAGUE: Central European Media Enterprises (CME, www.cme.net) reported a 23% increase in quarter three net revenues, at $165.5 million, with nine month revenues also up 23% at 587.9 million. OIBDA more than doubled for the first nine months, at $85.8 million. All CME broadcasting territories showed growth for the quarter.

    CME stock on NASDAQ, which had been as low as $9.54 on Friday, 21 October 2011, rose to a high of $11.77 on Monday, 24 October, following a newspaper interview with CEO Adrian Sarbu in which he predicted that investors would be pleased with the company's results. As the trading day closed on 25 October, the stock (which trades as CETV) had fallen to $10.78 before rebounding to $11.33 by early morning on 26 October. Trading volume surged at those times.

    In a statement, Sarbu said, "... TV ad markets showed mixed recovery. We now expect to generate revenues of approximately US$ 850 million and OIBDA of US$ 166 million for the full year. Audience leadership and cash flow generation remain our main priorities."

    CME's production company Media Pro Entertainment was one of the strongest areas for growth, with a 32.6% increase in net revenues, to $35.1 million, while the broadcast segment of CME reported a 144.8% increase in OIBDA, to $20.1 million.

    One of CME's biggest losses was in the area of currency exchange, with a loss of just under $46 million, compared with a gain of $62 million for the quarter in 2010.

    Operating and programming costs both rose (by around 20%), which contributed to a loss of $102.2 million attributed to CME Ltd.

    In individual territories, Bulgaria showed the biggest gains, with net revenues up almost double for the year to date, at $63.4 million. The smallest gains were noted in Romania, up 3% for the first nine months, at $112.4 million.

    CME operates television stations are located in Bulgaria (bTV, bTV Cinema, bTV Comedy, bTV Action and Ring.bg), Croatia (Nova TV, Doma and Nova World), the Czech Republic (TV Nova, Nova Cinema, Nova Sport and MTV Czech), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro, MTV Romania and PRO TV Chisinau,), the Slovak Republic (TV Markíza and Doma) and Slovenia (POP TV, Kanal A and the POP NON STOP subscription bouquet).